Reshaping the Social Contract? A Systematic Literature Review of Two Decades of Research on the Digital Welfare State in Developing Countries

Abstract

The rapid digitization of welfare states is a global phenomenon, yet its impacts in developing countries, where inequalities and weak infrastructure persist, are poorly understood. This systematic review synthesizes evidence on the implementation of digital welfare systems in developing countries and their effects on social inclusion and exclusion, as well as on the citizen‐state relationship. Following PRISMA guidelines, we conducted a systematic search across four databases: Scopus, Web of Science, PubMed, and ProQuest, for eligible studies. The review spans 25 years (2000–2025) to capture the full genesis and evolution of digital welfare as a distinct policy phenomenon, from early pilot programs to contemporary system‐wide integrations. A thematic synthesis was employed to analyse 26 studies that met the inclusion criteria and methodological quality. The findings identify digital welfare as a double‐edged sword: while capable of enhancing efficiency and transparency, it simultaneously creates new forms of exclusion for vulnerable populations. A critical finding is the indispensable yet often invisible role of human intermediaries who bridge the gap between digital systems and citizens. Furthermore, the integration of digital ID, datafication, and private actors is fundamentally transforming governance, often obscuring accountability and reshaping the social contract. The study highlights that the trajectory of digital welfare in developing countries is not technologically predetermined but contingent on political and design choices. This review concludes that to foster equitable outcomes, policy must prioritize rights‐based, inclusive‐by‐design systems, robust regulation of private actors, and investment in the foundational pillars of digital equity. PROSPERO Registration ID: CRD420251157370